NB: Bidders must ensure that they sign the register at the reception when delivering their bids BIDDER NAME: Back Scanning Solution

Transcription

1 RFB NUMBER: DESCRIPTION: Request For Bid: Appointment of a service provider to provide Back Scanning Solutions nationally for a period of 2 years. The solution will include and not limited to: File retrieval; File preparation; Document categorization; Document copying; Document scanning; Quality assurance; Document indexing; Document upload; File reconstruction; and Progress reporting. PUBLISH DATE: 11 December 2015 VALIDIY PERIOD: 120 days from the closing date CLOSING DATE: 18 January 2016 CLOSING TIME: 11:00 a.m. the closing time will be as per the clock at the RAF reception COMPULSORY BRIEFING N/A SESSION: BID RESPONSES MUST BE HAND DELIVERED / COURIERED TO: Road Accident Fund (RAF) 2 Eco Glades Office Park 420 Witch-Hazel Avenue Centurion 0046 Pretoria (BID RESPONSES MUST BE PLACED IN THE TENDER BOX MARKED BACK SCANNING SOLUTION ) ATTENTION: Mihloti Makondo NB: Bidders must ensure that they sign the register at the reception when delivering their bids BIDDER NAME:

2 Bidders should ensure that bids are delivered in time to the correct address. If the bid is late, it shall not be accepted for consideration. The RAF reception is generally accessible 8 hours a day (07h45 to 16h00); 5 days a week (Monday to Friday). Bidders must ensure that they deliver the bid document into the correctly marked tender box and sign the register at the reception when delivering bids. Bidders must advise their couriers of the instruction above to avoid misplacement of bid responses. ALL BIDS MUST BE SUBMITTED ON THE OFFICIAL FORMS THIS BID IS SUBJECT TO THE GENERAL CONDITIONS OF THE BID, THE GENERAL CONDITIONS OF CONTRACT (GCC) AND, IF APPLICABLE, ANY OTHER SPECIAL CONDITIONS OF CONTRACT. THE FOLLOWING PARTICULARS MUST BE FURNISHED (FAILURE TO DO SO SHALL RESULT IN YOUR BID BEING DISQUALIFIED) BIDDING STRUCTURE Indicate the type of Bidding structure by marking with an X : Individual bidder Joint venture Consortium Using Subcontractors Other If individual bidder, indicate the following: Name of bidder Registration number VAT registration number Contact person Telephone number Fax number address Postal address Physical address

3 If Joint Venture or Consortium, indicate the following: (To be completed for each JV/ Consortium member) Name of Joint Venture/ Consortium member Registration number VAT registration number Contact person Telephone number Fax number address Postal address Physical address If using subcontractors, indicate the following: Name of prime contractor Registration number VAT registration number Contact person Telephone number Fax number address Postal address Physical address If Joint Venture or Consortium, indicate the following: Name of prime contractor Registration number VAT registration number Contact person Telephone number Fax number address Postal address Physical address

4 Checklist of documents to be submitted: Please tick in the relevant block below YES NO One (1) original tender document with one (1) copy (clearly marked as Original and Copy) Original and valid Tax Clearance Certificate Prior three years (sequential) audited annual financial statements with signed audit report in case of a company Prior three years (sequential) annual financial statements prepared by a registered accountant in case of a Close Corporation (CC) Original certified copies (Copy with original stamp) of your CIPC company registration documents listing all members with percentage shareholding, in the case of a CC Latest original certified copies of all shareholder certificates (i.e. copy with original stamp), in case of a company Shareholding breakdown per race, gender and percentage shareholding with shareholders of the bidding company who are not individuals SBD 4 Declaration of interest List of references (at least two (2)) of past and present clients (Company name, department, branch, contact person with office telephone number and address) Original and valid B-BBEE Status Level Verification Certificate or a certified copy thereof, issued by Registered Auditors approved by IRBA or SANAS Accredited BEE verification agency or affidavit detailing the B-BBEE status

5 Please ensure that the following documents are completed: YES NO Completed Bid Conditions All standard bidding documents (SBD s) Completed Due Diligence Completed Price Schedule with detailed breakdown 1. The bidder (s) confirms that all information required to be furnished in its respective area is completed and all documentation required for evaluation purpose are provided. Failure to provide supporting documents and non-completion of essential information required for evaluation purpose will lead to the bidder being disqualified for non-compliance. Signed Name in Print Capacity Date

6 TABLE OF CONTENTS FOR RFB: 1. CONDITIONS AND UNDERTAKINGS BY BIDDER 2. BID CONDITIONS 3. SPECIAL CONDITIONS OF CONTRACTS ANNEXURES ANNEXURE A: ANNEXURE B: ANNEXURE C: ANNEXURE D: ANNEXURE E: ANNEXURE F: ANNEXURE G: ANNEXURE H: ANNEXURE I: SBD 2 TAX CLEARANCE SBD 4 DECLARATION OF INTEREST SBD 5 THE NATIONAL INDUSTRIAL PARTICIPATION PROGRAMME SBD 6.1 PREFERENCE POINTS CLAIM FORM SBD 8 DECLARATION OF BIDDER PAST SUPPLY CHAIN MANAGEMENT SBD 9 CERTIFICATE OF INDEPENDENT BID DETERMINATION SCOPE OF WORK PRICING SCHEDULE SERVICE PROVIDER AGREEMENT N.B. Except for the specific goods or service procured by the Road Accident Fund, service providers are required not to offer any gifts, hospitality or other benefit to any RAF official. To avoid doubt, branded marketing material is considered to be a gift. Furthermore, should any RAF official request a gift, hospitality or other benefit, the service providers is required to report the matter to our toll free fraud line at

7 1. CONDITIONS AND UNDERTAKINGS BY BIDDER BID 1.1 The Bid forms should not be retyped or redrafted but photocopies may be prepared and used. However, only documents with the original signature in black ink shall be accepted. Additional offers against any item should be made on a photocopy of the page in question Black ink should be used when completing Bid documents Bidders should check the numbers of the pages to satisfy themselves that none is missing or duplicated. Road Accident Fund will accept NO liability in regard to anything arising from the fact that pages are missing or duplicated. 1.2 I/We hereby Bid to supply all or any of the supplies and/or to procure all or any of the services described in the attached documents to Road Accident Fund on the terms and conditions and in accordance with the specifications stipulated in the Bid documents (and which shall be taken as part of, and incorporated into, this Bid) at the prices inserted therein. 1.3 I/We agree that The offer herein shall remain binding upon me/us and open for acceptance by Road Accident Fund during the validity period indicated and calculated from the closing hour and date of the Bid; the laws of the Republic of South Africa shall govern the contract created by the acceptance of my/our Bid and that I/we choose domicilium citandi et executandi in the Republic as indicated below; and 1.4 NB: BIDDERS TERMS AND CONDITIONS ARE NOT ACCEPTABLE. 1.5 I/We furthermore confirm that I/we have satisfied myself/ourselves as to the correctness and validity of my/our Bid that the price(s) and rate(s) quoted cover all the work/item(s) specified in the Bid documents and that the price(s) and rate(s) cover all my/our obligations under a resulting contract and that I/we accept that any mistakes regarding price(s) and calculations will be at my/our risk. 1.6 I/We hereby accept full responsibility for the proper execution and fulfillment of all obligations and conditions devolving on me/us under this Bid as the Principal(s) liable for the due fulfillment of this contract.

8 Signature(s) of Bidder or assignee(s) Date Name of signing person (in block letters) Capacity Are you duly authorized to sign this bid? Name of Bidder [company name] letters) (in block Postal address (in block letters) Domicilium citandi et executandi in the RSA (full street address of this place) (in block letters) Telephone Number:... FAX Number... Cellphone Number...

9 2 BID CONDITIONS 2.1 Bidders shall provide full and accurate answers to all (including mandatory) questions posed in this document, and, are required to explicitly state either "Accept or Not accept (with a )" regarding compliance with the requirements. Where necessary, the bidder shall substantiate their response to a specific question. 2.2 A under Accept will be interpreted as full compliance/acceptance to the applicable paragraph. A under Accept will be interpreted that the Bidder/s has/have read and understood the paragraph, but the bidder does not accept the content of the applicable paragraph. A under Not accept will be interpreted and evaluated objectively against explanations and supporting documentation accordingly. NOTE: If PARTIAL is indicated as the level of compliance and NO supporting documentation is provided that clearly clarifies the Bidder/s position, the paragraph will be evaluated as Non Comply. It is mandatory for the bidders to comply with the following bid conditions. 2.3 The following bid conditions will govern the contract between the Road Accident Fund and the successful bidder: Requirement ACCEPT NOT ACCEPT Bidders are invited to offer the Services in accordance with the attached Specifications and the conditions within this document The successful Bidder/s will be contracted to procure the Services for a period to be agreed after which RAF reserves the right to review and extend the contract for further period/s at the RAF s discretion The fees will be negotiated.

10 Interpretation of requirements ACCEPT NOT ACCEPT The Bidder/s shall accept RAF s interpretation of any specific requirement in the Bid documents or Specifications should there be a difference of interpretation between the Bidder/s and RAF Should any dispute arise as a result of this Bid and/or the subsequent contract, which cannot be settled to the mutual satisfaction of the Bidder/s and RAF, it shall be dealt with in terms of the General Conditions of Contract of this document Should there be any discrepancies between the Bid conditions and any other documentation that forms part of this RFB, the Bid conditions shall take preference. Documentation ACCEPT NOT ACCEPT Fully comprehensive service documentation shall be supplied in English by each Bidder, which shall explicitly and detail, describe the service/s offered. This documentation shall include sufficient detail to clearly give the reader a precise and unambiguous description of the service/s offered. Incomplete or incomprehensive service documentation will result in rejection of the offer Bidder s name and address should clearly appear on the outside of tender documents and on envelope. Selection ACCEPT NOT ACCEPT RAF reserves the right to evaluate and consider any Bids that do not comply strictly to this RFB. Selection ACCEPT NOT ACCEPT Acceptance of any Bids will only indicate, without any obligations on the part of either RAF and/or a Bidder, the willingness of such parties to enter into negotiations, which may or may not result in a contract/order as the case may be RAF reserves the right to make a selection solely on the information received in the Bids or to negotiate further with one or more Bidder/s.

11 Selection ACCEPT NOT ACCEPT The Bidder/s selected for further negotiations, if any, will be chosen on the basis of the greatest benefit to RAF and not necessarily on the basis of lowest price or any other criteria Should RAF consider it necessary, the Bidder/s shall agree to an inspection of the resources and works of the Bidder, if so requires Should RAF consider it necessary, RAF will visit the Bidder/s customer sites RAF reserves the right: To cancel this RFB at any time; Not to accept any Bids; To accept one or more Bids for further negotiation; and To contact any Bidder during the evaluation period, to clarify information only, without informing any other Bidder. Copyright ACCEPT NOT ACCEPT The specifications are the intellectual property of Road Accident Fund The contents of any specifications are the property of RAF and are confidential. It shall not in any manner be reproduced, destroyed, lent or given away without the permission. Precedence ACCEPT NOT ACCEPT All details, dimensions and instructions shown on any drawings, diagrams and specifications quoted, shall form part of this bid document If there is any contradictory requirements between the specifications, the drawings referred to and other specifications that have been quoted, the order of precedence, from highest to lowest is: Statutory and mandatory requirements, This bid document, Contract Conditions. Alternative suppliers ACCEPT NOT ACCEPT The Bidder accepts that the RAF will have the right to contract with any

12 other Service Provider for provision of services not covered by this specification Bidder must also submit: A written statement to the specification of RAF by the bidder, that none of his personnel have any involvement or interest in the bidder s business. Submission of Bid ACCEPT NOT ACCEPT RAF will also reject an offer if the Bidder/s fail to complete the compliance section/s in the format as described in paragraphs 2.1. and 2.2. Service approval ACCEPT NOT ACCEPT The Procuring of the Services shall not take place until RAF has given final approval of all procedures. Additional Criteria ACCEPT NOT ACCEPT RAF will evaluate the bids against the following criteria: Compliance to Bid Conditions Compliance to the Mandatory and Specifications/ functionality Price and B-BBEE Black Economic Empowerment ACCEPT NOT ACCEPT RAF has established a programme of economic empowerment in our procurement strategies. In this regard, companies are required to indicate their involvement, current and planned, with black businesses and professionals. This will for an important part of the evaluation criteria to be used. RAF reserves the right to request all relevant information, agreements and other documents to verify information supplied in response hereto. Addenda ACCEPT NOT ACCEPT In the event that modifications, clarifications or additions to the RFB become necessary, all Bidders will be notified, in writing, addenda to this RFB.

13 Preparation Costs ACCEPT NOT ACCEPT All costs incurred in the preparation, presentation and demonstration of the response shall be for the account of the bidder. All supporting documentation and manuals submitted with RFB will become RAF property unless otherwise stated by the Bidder/s at the time of submission. Confidential Material ACCEPT NOT ACCEPT Any material submitted by the Bidder/s, which is considered to be confidential in nature, must be clearly marked as such. Payment Terms Local Creditors ACCEPT NOT ACCEPT Payments of invoices will be effected on by last day of the calendar month following the calendar month of receipt of a correct and original invoice. Invoices/statements should be submitted after RAF has acknowledged receipt of the services procured or goods supplied. A correct and original monthly statement reflected the above invoices must be submitted to RAF by the 5 th of each month.

14 Please note that the following clauses of RAF s conditions and Procedures governing the Procurement of Services. 2.4 CONTRACT TERMINATION A contract/s with a successful Bidder/s may be terminated by the RAF on the grounds of valid commercial or operational requirements that were not foreseen at the time of the Request for Bid being submitted and the contract being entered into. The RAF, if it wishes to terminate the contract, shall be required to give 30 (thirty) days written notice of its intention to terminate the contract. Such notice must be preceded by bona fide discussion between the RAF and the successful Bidder. In this instance the RAF shall only remain liable for all amounts due to the successful Bidder with respect to the period ending on the date of the cancellation, and shall not be held liable for any damages or losses on the basis of such a termination of the contract. 2.5 DISPUTE RESOLUTION All disputes arising out of this RFB or relating to the legal validity of this RFB or any part thereof shall be resolved under this paragraph. The parties must refer any dispute to be resolved by: o Negotiation, in terms of paragraph 2.5.3; failing which o Mediation, in terms of paragraph 2.5.4; failing which o Arbitration, in terms of paragraph Paragraph Clause shall not preclude any party from access to an appropriate court of law for interim relief in respect of urgent matters by way of an interdict, or mandamus pending finalisation of the dispute resolution process contemplated in paragraph 2.5.1, for which purpose the parties irrevocably submit to the jurisdiction of a division of the High Court of the Republic of South Africa Within ten (10) days of notification, the parties must seek an amicable resolution to the dispute by referring the dispute to designated and authorized representatives of each of the parties to negotiate and resolve the dispute. If an amicable resolution to the dispute is found the authorized representatives of the parties must sign, within the ten (10) day period, an agreement confirming that the dispute has been resolved If negotiation in terms of paragraph fails, the parties must, within fifteen (15) days of the negotiations failing, refer the dispute for resolution by mediation under the rules of the Arbitration Foundation of Southern Africa (or its successor or body nominated in writing by it in its stead) The periods for negotiation (specified in paragraph 2.5.3) or for referral of the dispute for mediation (specified in paragraph 2.5.4), may be shortened or lengthened by written agreement between the parties In the event of the mediation contemplated in paragraph failing the parties shall refer the dispute, within fifteen (15) days of the mediation failing, for resolution by expedited arbitration under the current rules of the Arbitration Foundation of Southern Africa (or its successor or body nominated in writing by it in its stead).

15 2.5.7 A single arbitrator shall be appointed by agreement between the parties within ten (10) days of the dispute being referred for arbitration, failing which the arbitrator shall be appointed by the Secretariat of the Arbitration Foundation of Southern Africa (or its successor or body nominated in writing by it in its stead) At all times, every reasonable effort shall be made to ensure that such arbitrator has the necessary technical skills to enable him to adjudicate the dispute in a satisfactory manner The arbitration shall be held at Sandton, South Africa, in English The South African law shall apply The parties shall be entitled to legal representation The award of the arbitrator shall be final and binding on the parties, who hereby agree to give effect to the award. Either party shall be entitled to have the arbitrator s award made an order of court at the cost of the party requesting same This paragraph shall constitute the irrevocable consent of the parties to the dispute resolution proceeding in terms hereof and neither of the parties shall be entitled to withdraw there from or to claim at any arbitration proceedings that they are not bound by the arbitration provisions of this RFB Both parties shall comply with all the provisions of the RFB and with all due diligence during the determination of such dispute should the latter arise during the course of the RFB PAYMENT TERMS - LOCAL CREDITORS Original, detailed, correct and complete tax invoices, monthly statements (where applicable), VAT registration numbers (where applicable), verification of bank details (in the format required) and any other relevant supporting documents must be submitted to the Fund after it has acknowledged receipt in writing of the services procured or goods received, to its satisfaction Tax invoices and all necessary supporting documents contemplated in 9.1 above must be submitted to the Fund by the 1 st (first) business day of a calendar month in order for payment to be effected by the end of the same calendar month. Otherwise payment shall be effected by the end of the following calendar month. Payments shall furthermore only be made on condition that the required documentation submitted are the originals, correct and complete No penalty interest shall be permitted to be charged in the event of the requirements referred to in 9.1 and 9.2 above not being complied with Payment shall be effected by electronic bank transfer or any other method of payment decided to be used by the Fund from time to time and at the Fund s sole discretion.

16 2.6.6 Payment shall furthermore be subject to the Fund s standard Special Terms and Conditions of Contract, which if applicable shall prevail over this clause in all instances; and a copy whereof shall be furnished upon request. 2.7 TERMINATION The following clause will be applicable to all contracts entered into/orders placed by RAF: If, at any time during the currency of this Bid and subsequent contract/order, RAF in its reasonable discretion determines that the other party has, in respect of this bid, contract/order or any other contract/order or agreement to which they were or are parties to: Acted dishonestly and/or in bad faith, and/or Has made any intentional or negligent misrepresentation to RAF whether in any negotiations preceding the conclusion of, or in the execution of this RFB or any other agreement between the parties, Then RAF shall be entitled by written notice to the other party forthwith to cancel this contract/order. Upon such cancellation, RAF shall be entitled, in addition to all other remedies available to it, to recover from the other party all damages it has suffered by virtue of such conduct by the other party. Should, at the time of such cancellation, AF be indebted to the other party for any amounts whatsoever, RAF shall be entitled to withhold payment in respect thereof for a period of 90 (ninety) days from the date of cancellation in order to investigate the party s conduct and any damages suffered by RAF. NO payment by RAF to the other party after the lapse of such period shall preclude RAF thereafter, from recovering from the other party any such damages as it may have suffered. 2.8 SPECIFIC INFORMATION REQUIRED For ease of reference and evaluating purposes, please furnish replies under the same headings and refer individually to all specific paragraph numbers. Please be clear in your response and use definite answers. 2.9 COPIES REQUIRED It is a condition that the Bidder/s shall furnish an offer comprising of one (1) original plus one (1) copy for the supply of products and services enumerated in this Request for Bid Document. The Bidder/s shall ensure that all the relevant information and documentation is submitted with the original as well as the copy. RAF shall not be liable should it become evident that a Bidder/s offer/s is/are not accepted and the reason for such non-acceptance is as a result of the Bidder/s failure to include the information in all copies.

17 2.10 DUE DILIGENCE Bidder/s must supply Financial Information as requested in par and Annexure C GENERAL VENDOR INFORMATION The following general information is required from the prospective vendor: NAME OF COMPANY/TRADING AS: Postal Address Street Address Telephone and facsimile numbers COMPANY HEAD OFFICE: Postal Address Street Address Telephone and facsimile numbers Contact person List of Directors/Partners/affiliated companies with proof of shareholding with this companies/trust - Compulsory List of shareholders (Certified original copies of individual share certificates/certified original copies of CIPRO registration document indicating members with percentage interest) Compulsory Date of registration Company registration number Draw or attach the organizational structure of your company: a) Ownership structure, i.e. the % shareholding by major investors and controlling interest in affiliated companies. b) Basic functional structure, i.e. the administrative section of your company with which RAF will be dealing on a day-to-day basis Original Valid Tax Clearance Certificate. Compulsory Original and valid B-BBEE Status Level Verification Certificate, a certified copy thereof or an affidavit detailing the B-BBEE status for EME s (Bidders who do not submit B-BBEE Status Level Verification Certificate or are noncompliant contributors to B-BBEE do not qualify for preference points for B-BBEE will not be disqualified from the bidding process but will score points out of 90 or 80 for price only and zero (0) points out of 10 or 20 for B-BBEE)

18 Audited Financial Statements with auditor s report of the company for the past three sequential years. / Financial Statements of a CC for the past three years prepared and signed by a registered accountant Compulsory 2.12 INFRASTRUCTURE a) Would you describe your business as international, national or regional? b) List all branches and offices of your company countrywide (Republic of South Africa) together with telephone numbers ACTIVITY AND SERVICE PROFILE Detailed description of main field of expertise/area of operation of company Range of services offered Reference list of some contracts completed during the last 3 to 5 years, including value, duration, location and contact persons List of current contracts and value thereof. Submit a list of current contracts, contact person and contract numbers. Has any contract with your company ever been cancelled by a client? If YES, provide details TRAINING CAPABILITIES (If Applicable) Does you company have any in-house training capabilities? (Infrastructure) If YES, provide an overview of: Activities included in this process (in-house training). Method used for evaluating the effectiveness of the in-house training capabilities to ensure the required level of service is maintained What training is done by the company? What type of training is done for you by other companies and who are these companies? (Provide details please) What type of continuing/supplementary training is done by the company? Give details of subjects, schedules, etc Do you have staff in your training department employed on a contract basis? If YES, give details.

19 2.15 MANAGEMENT AND SERVICING Please supply a full description of how the company is organized together with an organization organogram Please indicate a breakdown of staff compliment into management/ supervisors/ administration/ guards/ other services (specify) Please provide details of qualifications and selection process with regards to management/supervisory expertise in the company Are all these personnel employed on a full time basis? If not, provide details ELECTRONIC DATA INTERCHANGE Respond to the following questions in respect of Electronic Data Interchange (EDI). Please tick the relevant box. a) Do you have access to Internet? Yes No b) Are you interested in Electronic Data Interchange (EDI) between yourselves and RAF? Yes No REASONS FOR DISQUALIFICATION The RAF reserves the right to disqualify any bidder which does any one or more of the following, and such disqualification may take place without prior notice to the offending bidder, however the bidder shall be notified in writing of such disqualification: Bidders who do not have a valid and original Tax Clearance Certificate on the closing date and time of the bid; Bidders who submitted incomplete information and documentation according to the requirements of this RFB; Bidders who submitted information that is fraudulent, factually untrue or inaccurate, for example memberships that do not exist, B-BBEE credentials, experience, etc.; Bidders who received information not available to other vendors through fraudulent means; and/or Bidders who do not comply with mandatory requirements as stipulated in this RFB There shall be no public opening of the Bids received; however, the list of bids received may be published on the RAF website. There shall be no discussions with any enterprise until evaluation of the

20 proposal has been complete. Any subsequent discussions shall be at the discretion of the RAF. Unless specifically provided for in the proposal document, bids submitted by means of telegram, telex, facsimile or similar means shall not be considered No Bids from any bidder with offices within the RSA shall be accepted if sent via the Internet or . However Bids from international bidders with no office or representation in the RSA shall be accepted if received via the Internet or before the closing date and time Such Bids shall not be made available for evaluation until the original signed documentation is received within three (3) working days after the closing date, otherwise the proposal shall be disqualified. International bidders must submit proof that they do not have any offices or representation in South Africa ENQUIRIES Enquiries regarding this Request for Bid should be submitted via to: Bid enquiries: Procurement Specialist Enquiries should reference specific paragraph numbers, where appropriate. All questions/ enquiries must be forwarded in writing not later than 11:00am on 07 January Questions/enquiries received after 11:00am on 07 January 2016 will not be entertained. Questions/ Answers will be published on the RAF website on 12 January 2016.

21 3 GENERAL CONDITIONS OF CONTRACT 3.1 Definitions The following terms shall be interpreted as indicated: Closing time means the date and hour specified in the bidding documents for the receipt of bids Contract means the written agreement entered into between the purchaser and the supplier, as recorded in the contract from signed by the parties, including all attachments and appendices thereto and all documents incorporated by reference therein Contract price means the price payable to the supplier under the contract for the full and proper performance of this contractual obligation Corrupt practice means the offering, giving, receiving, or soliciting of anything of value to influence the action of a public official in the procurement process or in contract execution Countervailing duties are imposed in cases where an enterprise abroad is subsidized by its government and encouraged to market its products internationally Country of origin means the place where goods were mined, grown or produced or from which the services are supplied. Goods are produced when, through manufacturing, processing or substantial and major assembly of components, a commercially recognized new product results that is substantially different in basis characteristics or in purpose or utility from its components Day means calendar day Delivery means delivery in compliance of the conditions of the contract or order Delivery ex stock means immediate delivery directly from stock actually on hand Delivery into consignees store or to his site means delivered and unloaded in the specified store or depot or on the specified site in compliance with the conditions of the contract or order, the supplier bearing all risks and charges involved until the supplies are so delivered and a valid receipt is obtained Dumping occurs when a private enterprise abroad market its good on own initiative in the RSA at lower prices than that of the country or origin and which have the potential to harm the local industries in the RSA Force majeure means an event beyond the control of the supplier and not involving the supplier s fault or negligence and not foreseeable. Such events may include, but is not restricted to, acts of the purchaser in its sovereign capacity, wars or resolutions, fires

22 floods, epidemics, quarantine restrictions and freight embargoes Fraudulent practice means a misrepresentation of facts in order to influence procurement process or the execution of a contract to the detriment of any bidder, and includes collusive practice among bidders (prior to or after bid submission) designed to establish bid prices at artificial non-competitive levels and to deprive the bidder of the benefits of free and open competition GCC mean the General Conditions of Contract Good means all of the equipment, machinery, and/or other materials that the supplier is required to supply to the purchaser under the contract Imported content means that portion of the bidding price represented by the cost of components, parts or materials which have been or are still to be imported (whether by the supplier or his subcontractors) and which costs are inclusive of the costs abroad, plus freight and other direct importation costs such as landing costs, dock dues, import duty, sales duty or other similar tax or duty at the South African place of entry as well transportation and handling charges to the factory in the Republic where the supplies covered by the bid will be manufactured Local content means that portion of the bidding price, which is not included in the imported content provided that local manufacture does take place Manufacture means the production of products in a factory using labour, materials components and machinery and includes other related value-adding activities Order means an official written order issued for the supply of goods or works or the procuring of a service Project site where applicable, means the place indicated in bidding documents Purchaser means the organization purchasing the goods Republic means the Republic of South Africa SCC means the Special Conditions of Contract Services means those functional services ancillary to the supply of the goods, such as transportation and any other incidental services, such as installation, commissioning, provision of technical assistance, training, catering, gardening, security, maintenance and other such obligations of the supplier covered under the contract Written or in writing means handwritten in ink or any form of electronic or mechanical writing.

23 3.2 Application These general conditions are applicable to all bids, contracts and orders including bids for functional and professional services, sales, hiring, letting and the granting or acquiring of rights, but excluding immovable property, unless otherwise indicated in the bidding documents Where applicable, special conditions of contract are also laid down to cover specific supplies, services or works Where such special conditions of contract are in conflict with these general conditions, the special shall apply. 3.3 General Unless otherwise indicated in the bidding documents, the purchase shall not be liable for any expense incurred in the preparation and submission of a bid. Where applicable a non-refundable fee for documents may be charged With certain exceptions, invitations for bid are only published in the Government Tender Bulletin. The Government Tender Bulletin may be obtained directly from the Government Printer, Private Bag X85, Pretoria 0001, or accessed electronically from Standards The goods supplied shall conform to the standards mentioned in the bidding documents and specifications. 3.5 Use of contracts documents and information The supplier shall not, without the purchaser s prior written consent, disclose the contract, or any provision thereof, or any specification, plan, drawing, pattern, sample or information furnished by or on behalf of the purchaser in connection therewith, to any person other than a person employed by the supplier in the performance of the contract. Disclosure to any such employed person shall be made in confidence and shall extend only as far as may be necessary for purposes of such performance The supplier shall not, without the purchaser s prior written consent, make use of any document or information mentioned in GCC clause 5.1 except for purposes of performing the contract Any document, other than the contract itself mentioned in GCC clause 5.1 shall remain the property of the purchaser and shall be returned (all copies) to the purchaser on completion of the supplier s performance under the contract if so required by the purchaser The supplier shall permit the purchaser to inspect the supplier s records relating to the performance of the supplier and to have them audited by auditors appointed by the purchaser, if so required by the purchaser.

24 3.6 Patent rights The supplier shall indemnity the purchaser against all third-party claims of infringement of patent, trademark, or industrial design rights arising from use of the goods or any part thereof by the purchaser. 3.7 Performance Security Within thirty (30) days of receipt of the notification of contract award, the successful bidder shall furnish to the purchaser the performance security of the amount specified in GCC The proceeds of the performance security shall be payable to the purchaser as compensation for any loss resulting from the supplier s failure to complete his obligations under the contracts The performance security shall be denominated in the currency of the contract, or in freely convertible currency acceptable to the purchaser and shall be in one of the following: (a) a bank guarantee or an irrevocable letter or credit issued by a reputable bank located in the purchaser s country or broad, acceptable to the purchaser, in the form provided in the bidding documents or another form acceptable to the purchaser; or (b) a cashier s or certified cheque The performance security will be discharged by the purchaser and returned to the supplier not later than thirty (30) days following the date of completion of the supplier s performance obligations under the contract, including any warranty obligations, unless otherwise specified in SCC. 3.8 Inspections, tests and analyses All pre-bidding testing will be for the account of the bidder If it is a bid condition that supplies to be produced or services to be procured should at any stage during production or execution or on completion be subject to inspection, the premises of the bidder or contractor shall be open, at all reasonable hours, for inspection by a representative of the Department or an organization acting on behalf of the Department If there are no inspection requirements indicated in the bidding documents and no mention is made in the contract, but during the contract period it is decided that inspections shall be carried out, the purchaser shall itself make the necessary arrangements, including payments arrangements with the testing authority concerned If the inspection, test and analyses referred to in clauses 8.2 and 8.3 show the supplies to be in accordance with the contract requirements, the cost of the inspections, tests and analyses shall be defrayed by the purchaser.

25 3.8.4 Where the supplies or services referred to in clauses 8.2 and 8.3 do not comply with the contract requirements, irrespective of whether such supplies or services are accepted or not, the cost in connection with these inspections, tests or analyses shall be defrayed by the supplier Supplies and services, which are, referred to in clauses 8.2 and 8.3 and which do not comply with the contract requirements may be rejected Any contract supplies may, on or after delivery, be inspected; tested or analyzed and may be rejected if found no to comply with the requirements of the contract. Such rejected supplies shall be held at the cost and risk of the supplier who shall, when called upon, remove them immediately at his own cost and forthwith substitute them with supplies which do comply with the requirements of the contract. Failing such removal the rejected supplies shall be returned at the suppliers cost and risk. Should the supplier fail to provide the substitute supplies forthwith, the purchase may without giving the supplier further opportunity to substitute the rejected supplies purchase such supplies as may be necessary at the expense of the supplier The provisions of clauses 8.4 to 8.7 shall not prejudice the right of the purchaser to cancel the contract on account of a breach of the conditions thereof, or to act in terms of Clause 23 of GCC. 3.9 Packing The supplier shall provide such packing of the goods as is required to prevent their damage or deterioration during transit to their final destination, as indicated in the contract. The packing shall be sufficient to withstand, without limitation, rough handling during transit and exposure to extreme temperatures, salt and precipitations during transit, and open storage. Packing, case size and weights shall take into consideration, where appropriate, the remoteness of the goods final destination and the absence of heavy handling facilities at all points in transit The packing, marking and documentation within and outside the packages shall comply strictly with such special requirements as shall be expressly provided for in the contract, including additional requirements, if any, specified in SCC, and in any subsequent instructions ordered by the purchaser Delivery and documents Delivery of the goods shall be made by the supplier in accordance with the terms specified in the contract. The details of shipping and/or other documents to be furnished by the supplier are specified in SCC Insurance The goods supplied under the contract shall be fully insured in a freely convertible currency against loss or damage incidental to manufacture or acquisition, transportation, storage and delivery in the manner specified in the SCC.

26 3.12 Transportation Should a price other that an all-inclusive delivered price be required, this shall be specified in the SCC Incidental services The supplier may be required to provide any or all of the following services, including additional services, if any specified in SCC: (a) (b) (c) (d) (e) performance or supervision of on-site assembly and/or commissioning of the supplied goods; furnishing of tools required for assembly and/or maintenance of the supplied goods; furnishing of a detailed operations and maintenance manual for each appropriate unit of the supplied goods; performance or supervision or maintenance and/or repair of the supplied goods, for a period of time agreed by the parties, provided that this service shall not relieve the supplier of any warranty obligations under this contract; and training of the purchaser s personnel, at the supplier s plant and/or on-site, in assembly, start-up, operation, maintenance, and/or repair of the supplied goods Prices charged by the supplier for incidental services, if not included in the contract price for the goods, shall be agreed upon in advance by the parties and shall not exceed the prevailing rates charged to other parties by the supplier for similar services Spare parts As specified in SCC, the supplier may be required to provide any or all of the following materials, notifications, and information pertaining to spare parts manufactured or distributed by the supplier: (a) (b) such spare parts as the purchaser may elect to purchase from the supplier, provided that this election shall not relieve the supplier of any warranty obligations under the contract ; and in the event of termination of production of the spare parts: (i) (ii) Advance notification to the purchaser of the pending termination, in sufficient time to permit the purchaser to procure needed requirements; and Following such termination, furnishing at no cost to the purchaser, the blueprints, drawings and specifications of the spare parts, if requested Warranty The supplier warrants that the goods supplied under the contract are new, unused, of the most recent or current models and that they incorporate all recent improvements in design and materials unless provided otherwise in the contract. The supplier further warrants that all goods supplied under this contract shall have no defect, arising from design, materials, or workmanship (except when the design and/or material is required

27 by the purchaser s specifications) or from any act or mission of the supplier, that may develop under normal use of the supplied goods in the conditions prevailing in the country of final destination This warranty shall remain valid twelve (12) months after the goods, or any portion thereof as the case may be, have been delivered to and accepted at the final destination indicated in the contract, or for eighteen (18) months after the date of shipment from the port or place of loading in the source country, whichever period concludes earlier, unless specified otherwise in SCC The purchaser shall promptly notify the supplier in writing of any claims arising under this warranty Upon receipt of such notice, the supplier shall, with the period specified in SCC and with all reasonable speed, repair or replace the defective goods or parts thereof, without costs to be purchaser If the supplier, having been notified, fails to remedy the defect(s) within the period specified in SCC, the purchaser may proceed to take such remedial action as may be necessary, at the supplier s risk and expense and without prejudice to any other rights which the purchaser may have against the supplier under the contract Payment The method and conditions of payment to be made to the supplier under this contract shall be specified in SCC The supplier shall furnish the purchaser with an invoice accompanied by a copy of the delivery note and upon fulfillment of other obligations stipulated in the contract Payments shall be made promptly by the purchaser, but in no case later than thirty (30) days after submission of an invoice or claim by the supplier Payment will be made in Rand unless otherwise stipulated in SCC Prices Prices charged by the supplier for goods delivered and services performed under the contract shall not vary from the prices quoted by the supplier in his bid, with the exception of any price adjustments authorized in SCC or in the purchaser s request for bid validity extension, as the case may be Contract Amendments No variation in or modification of the terms of the contract shall be made except by written amendment signed by the parties concerned.

28 3.19 Assignment The supplier shall not assign, in whole or in part, its obligations to perform under the contract, except with the purchaser s prior written consent Subcontracts The supplier shall notify the purchaser in writing of all subcontracts awarded under this contract if not already specified in the bid. Such notification, in the original bid or later, shall not relieve the supplier from any liability or obligation under the contract Delays in the supplier s performance Delivery of the goods and performance of services shall be made by the supplier in accordance with the time schedule prescribed by the purchaser in the contract If at any time during performance of the contract, the supplier or its subcontractor(s) should encounter conditions impeding timely delivery of the goods and performance of services, the supplier shall promptly notify the purchaser in writing in writing of the fact of the delay, its likely duration and its cause(s). As soon as practicable after receipt of the supplier s notice, the purchaser shall evaluate the situation and my at his discretion extend the supplier s time for performance, with or without the imposition of penalties, in which case the extension shall be ratified by the parties by amendment of contract No provision in a contract shall be deemed to prohibit the obtaining of supplies or services from a national department, provincial department, or local authority The right is reserved to procure outside of the contract small quantities or to have minor essential services executed if an emergency arises, the supplier s point of supply is not situated at or near the place where the supplies are required, or the supplier s services are not readily available Except as provided under GCC clause 3.25, a delay by the supplier in the performance of its delivery obligations shall procure the supplier liable to the imposition of penalties, pursuant to GCC clause 3.22, unless an extension of time is agreed upon pursuant to GCC clause without the application of penalties Upon any delay beyond the delivery period in the case of a supplies contract, the purchaser shall, without canceling the contract, be entitled to purchase supplies of a similar quality and up to the same quantity in substitution of the goods no supplied in conformity with the contract and to return any goods delivered later at the supplier s expense and risk, or to cancel the contract and buy such goods as may be required to complete the contract and without prejudice to his other rights, be entitled to claim damages from the supplier.